Howmet Aerospace Inc. (HWM) Q3 2022 Earnings Call Transcript

Howmet Aerospace Inc. (NYSE:HWM) Q3 2022 Results Conference Call October 31, 2022 10:00 AM ET

Company Participants

Paul Luther - Vice President of Investor Relations

John Plant - Executive Chairman and Chief Executive Officer

Kenneth Giacobbe - Executive Vice President and Chief Financial Officer

Conference Call Participants

Robert Spingarn - Melius Research

Gautam Khanna - Cowen

Elizabeth Grenfell - Bank of America

David Strauss - Barclays

Myles Walton - Wolfe

Seth Seifman - JPMorgan

Kristine Liwag - Morgan Stanley

Noah Poponak - Goldman Sachs

Matt Akers - Wells Fargo

Operator

Good day, and welcome to Howmet Aerospace Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] And please note that this event is being recorded.

I would now like to turn the call over to Paul Luther, Vice President of Investor Relations. Please go ahead.

Paul Luther

Thank you, Cole. Good morning, and welcome to the Howmet Aerospace Third Quarter 2022 Results Conference Call. I'm joined by John Plant, Executive Chairman and Chief Executive Officer; and Ken Giacobbe, Executive Vice President and Chief Financial Officer. After comments by John and Ken, we will have a question-and-answer session.

I would like to remind you that today’s discussion will contain Forward-Looking Statements relating to future events and expectations. You can find factors that could cause the Company’s actual results to differ materially from these projections listed in today’s presentation and earnings press release and in our most recent SEC filings.

In today's presentation, references to EBITDA and EPS, meaning adjusted EBITDA, excluding special items and adjusted EPS excluding special items. These measures are among the non-GAAP financial measures that we've included in our discussion. Reconciliations to the most directly comparable GAAP financial measures can be found in today’s press release and in the appendix in today’s presentation.

With that, I would like to turn the call over to John.

John Plant

Thanks, P.T., and welcome everyone. Let's move to Slide 4. Howmet continued to perform well in the third quarter, earnings per share were in line with guidance midpoint and EBITDA margin was strong at 22.5%. Revenue, EBITDA and earnings per share, all grew for the fifth consecutive quarter. Q3 revenue was $1.433 billion and was factually lower compared to the midpoint of guidance of $1.44 billion.

All aerospace segments showed strong performance with sequential growth in the third quarter. Commercial transportation was lower reflecting normal seasonality and the effect of the wheels [indiscernible], which has now been resolved and production at the site brought back fully online as of the third week of October.